Rockwell Automation inks $1 billion revolver at Libor plus 75-150 bps

By Toni Weeks

San Luis Obispo, Calif., March 27 – Rockwell Automation, Inc. arranged for a $1 billion five-year revolving credit agreement on March 24 with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The company may increase the amount of commitments under the agreement by up to $350 million.

Borrowings bear interest at Libor plus 75 basis points to 150 bps. There is also a facility fee of 6 bps to 25 bps. Both are based on credit ratings.

Under the agreement, the company must not permit its debt-to-capital ratio to exceed 60%.

The agreement replaces the $750 million five-year credit agreement dated May 22, 2013. The company did not incur any penalties in connection with the early termination of the old agreement.

Proceeds will be used for general corporate purposes.

Goldman Sachs Bank USA and Bank of America, NA are syndication agents. Bank of New York Mellon, BMO Harris Bank NA, Citibank, NA, Deutsche Bank Securities Inc., Northern Trust Co., PNC Bank, NA, U.S. Bank NA and Wells Fargo Bank, NA are the documentation agents. Goldman Sachs Bank, J.P. Morgan Securities LLC and BofA Merrill Lynch are joint lead arrangers and joint bookrunners.

Rockwell is a Milwaukee-based information solutions provider for the auto industry.

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